Why is supply chain management an important area to study?

Studying supply chain management empowers you to keep the wheels turning smoothly — both in everyday situations and in times of crisis. Whatever your relationship to the supply chain, gaining a better understanding of the flow of production and distribution will empower you to: Collaborate more efficiently.

What was the main reason behind the evolution of SCM?

The main driving force behind the development of SCM over the past 20 years has been the desire to minimize inventory level. In the 1980s companies discovered new manufacturing techniques that allowed them to reduce costs and better compete in different markets.

When did supply chain management emerge?

The 1980s marked the beginning of a sea-change in logistics in the history of supply chain management. The emergence of personal computers in the early 1980s provided tremendously better computer access to planners and a new graphical environment for planning.

Why it is important for an organization’s supply chain to include the management of their data and financial strategies?

Financial supply chain management focuses on making optimum trade-offs across the end-to-end business. Perhaps most importantly, financial supply chain management provides visibility to every financial process involved in the supply chain and reduces costs, freeing up working capital.

What is the history and evolution of logistics and supply chain?

The evolution of logistics and Supply Chain Management (SCM) in the 1990s can be traced back to “physical distribution management” in the 1970s when there was no coordination among the various functions of an organization, and each was committed to attain its own goal.

What is supply chain according to scholars?

Definition. A supply chain consists of all parties (manufacturers, suppliers, transporters, warehouses, retailers, and customers) and, within each organization, all the functions involved, directly or indirectly, in fulfilling a customer request (Chopra and Meindl 2010).

Why supply chain is a good field?

Supply Chain is a fantastic career path for anyone. For many people their interests, desires, and goals will change over time. A great feature of Supply Chain careers is that there are so many options and directions that as your goals change you can easily change within Supply Chain.

Why is supply chain integration important to organizations?

Supply chain integration boosts transparency capabilities which in turn increases efficiency, productivity, and effectiveness. Information systems and supply chain management software also provide a platform for real time transparent communication initiatives which result in long term operational improvements.

What is SCM and why is it important?

SCM is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. SCM also deals with the movement and storing of materials needed to create a product, as well as inventory management, and keeping track of finished goods from where they were created to who they go to.

How does SCM increase profit leverage?

SCM increases profit leverage since supply chain managers help control and reduce the cost of the supply chain, which provides drastic increases in firm profits. Supply chain managers also decrease the use of plants, warehouses, and transportation vehicles within the chain so that fixed assets can be reduced.

What is the importance of Supply Chain Management in a business?

It is well known that supply chain management is an integral part of most businesses and is essential to company success and customer satisfaction. The main importance of Supply Chain Management are:- Decrease Production Cost – A reliable supply chain delivers materials to assembly plants and avoid any costs that may occur due to delays.